The Independent Power Producers’ Association, Nepal (IPPAN) has approved its ‘IPPAN Vision 2029’ along with a 50-point action plan to solve major issues and promote long-term growth in the energy sector.
The newly elected executive committee of IPPAN held its second meeting in Dhulikhel on Asar 19 and 20. Under the chairmanship of President Mohan Kumar Dangi, the meeting approved the detailed 50-point action plan. This plan gives top priority to Power Purchase Agreements (PPA), policy reforms, investment, transmission lines, and increasing electricity consumption within the country.
Power Purchase Agreements (PPA) and Reforms
IPPAN has plan to prepare a draft for a bankable PPA with international hydrology standards and will request Nepal Electricity Authority (NEA) to adopt it. They will push to fix separate and reasonable rates for storage and pump storage projects. They also want to immediately open PPAs for projects of 16,000 MW capacity which are currently on hold at NEA after applying.
To increase local power usage, they will lobby to provide cheaper electricity rates for industrial users and introduce off-peak pricing. They will also work to make the grid connection process for private projects simple and fair. IPPAN will advocate for compensation if investors face losses due to NEA delaying transmission lines, and they want PPA rates to be reviewed based on inflation. They also plan to simplify the PPA process and end the trend of making contingency and ‘Take and Pay’ PPAs.
Policy and Legal Reforms
IPPAN will push the parliament to pass the pending electricity bill within one year with private sector-friendly rules. They want land acquisition and tree cutting processes completed within one year using a sunset law. They will also lobby to allow the private sector to build transmission lines and build shared transmission lines for projects in the same river corridor.
They are requesting clear guidelines and licenses for trading electricity with neighboring countries. To make land acquisition easier, they want to amend the land act through a sunset law. They will also request the Ministry of Home Affairs for a separate security strategy for energy projects. Additionally, they want to implement rules like ‘Silence is Consent’ to stop delays and ease the import of explosives and electromechanical parts. They also want to keep the Return on Equity (ROE) limit investor-friendly.
Investment and Financial Reforms
To help with financing, IPPAN will lobby the Ministry of Finance and Nepal Rastra Bank to set up a special energy fund. They will seek access to green bonds, climate finance, and foreign investments. They are demanding that the energy sector be declared a priority sector so developers can get loans at interest rates below 9 percent. They will also coordinate to make the issue of right shares easier.
They plan to request Nepal Rastra Bank for a special refinancing package for sick and small hydropower projects. IPPAN wants to cancel contingency provisions for completed projects, remove double taxes on energy projects, and expand loans based on project cash flows. They will also work to manage affordable insurance for projects and seek VAT exemptions or refunds on construction materials.
Transmission and Infrastructure Development
IPPAN wants transmission line construction to be treated as a national priority. They want grid access to be developer-friendly and hope to allow the private sector to build transmission lines under a public-private partnership model. They will lobby for a fair and scientific wheeling charge and push for fast construction of transmission lines to India and Bangladesh. They also plan to mobilize long-term funds, green finance, and organize training to increase the capacity of investors in building transmission lines.
Energy Consumption and Diversification
To make ‘Made in Nepal’ products competitive, IPPAN will work to provide cheap power to industries. They will coordinate with organizations like NADA to promote electric vehicles (EVs) and expand charging stations. They will encourage cooking with electricity instead of LPG and diesel. To keep the grid stable, they will prioritize battery storage and support research on green hydrogen.
Environmental and Social Responsibility
IPPAN wants projects below 200 MW to require only an Initial Environmental Examination (IEE) instead of a long EIA. They want a sunset law to finish EIA and IEE approvals within 3 to 5 months. They will provide skill training to local people in project-affected areas. They also want clear boundaries for conservation areas so energy projects can coexist peacefully, and they will promote carbon trading.
Strengthening IPPAN’s Image
IPPAN plans to develop itself as a research and development think tank. They will study and publish reports on how the private sector helps the economy and society. They will share their decisions and solutions to member problems openly. IPPAN will launch a communication campaign with help from experts to build its brand, use a new logo, newsletter, and website, and share stories of successful member projects. They will showcase their progress in national and international energy meets and introduce a code of conduct for all executive members to maintain high professional standards.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
